HELOC for rental property. Please help

[Joseph Dike]

Hello all,

I hope I’m posting this in the right section.

I found BP a few months ago and cant stop reading. So much experience and knowledge on here, just glad I found it.

Now for the story.

I bought my primary residence about 3 years ago. To date I have about 60k in equity I am able to pull out of it. 20yr draw followed by a 20yr repayment. I am contemplating purchasing a fourplex for 280k with 25% down, so I would be coming out of pocket 10k as well. Cash flow is 2400$/mon as of now (600$/unit), each unit is 2bd 1ba, but could increase maybe another 100$/unit. Only water (100$/mon) is landlords responsibility, everything else by tenets. PITI is about 1630$/mon, and I figured another 500$/mon for vac, repairs, and capex. There is also a 4 car garage that that landlord uses for storage and tenets do not currently use, so could provide a little extra.

This would be my first rental property. Does this make sense. Do the numbers make it an ok deal? Any advice is welcome. Thank you

Joey